Australian extremist arrested

The federal government has officially listed the Islamic State group as a terrorist organisation, in what it says is a message to Australians intending to join or fund islamic militants in Iraq or Syria.

Attorney General George Brandis says Australians who have fought with, or who financially support, a listed terrorist group face up to 25 years in jail.

The new criminal code listing for the Islamic State replaces a listing for the Islamic State of Iraq and the Levant (ISIL) in keeping with the group's recent expansion.

"The Islamic State and ISIL are the same organisation," Mr Brandis said in a statement.

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"The government has moved to specifically list the Islamic State under this name reflecting an expansion of the organisation's operating area and its announcement of an Islamic caliphate.

"It does not represent a change in the Islamic State's leadership, membership or methods of operation."

Mr Brandis says ASIO has advised that the Islamic State movement is attracting "a large number of foreign fighters, including Westerners" and is now one of the world's most deadly and active terrorist organisations.

Its activities include targeting crowds and public gatherings during holidays and religious festivals and public executions in areas it controls.

"Listing the Islamic State reinforces the government's strong message to those Australians who may wish to participate in the conflicts in Syria and Iraq ... that their activities may be subject to offences with significant penalties," Mr Brandis said.

It is an offence for Australians to direct the activities of, be a member of, recruit for, train for and receive training from a listed terrorist organisation.

It is also an offence to get funds to, from or for, provide support to and associate with the listed terrorist organisation's members.